MONTHLY NEWSLETTER APRIL 2019
Woods Hole Research Center Private sector allies in the fight against climate change Dr. Philip B. Duffy President & Executive Director As many of you know, WHRC recently entered into a research initiative with Wellington Management, a prominent Boston investment firm, to investigate and highlight how physical climate risk (extreme weather, etc.) affects asset values and capital markets.
This is part of a broader strategy at WHRC of recruiting groups from across the political spectrum and representing all sectors of society (government, NGO, faith groups, and the private sector) into the fight against climate change. This is founded on the premise that to succeed in conquering climate change we’ll need everyone pulling in the same direction.
I am excited about our work with Wellington specifically because it is a new and important pathway to achieving societal benefit. In particular, WHRC sees huge upside from raising awareness of physical climate risk within the investment industry. We expect that this will prompt a significant reallocation of capital when investors realize that assets have been mispriced because of previous failure to consider climate risk. The beginnings of this are evident, for example, in studies showing that at-risk coastal real estate in Florida is appreciating more slowly than other comparable properties. This reallocation of capital will happen sooner or later, but the societal benefits will be greater if it happens sooner. Beyond addressing mispricing, we expect our work with Wellington to promote climate action and preparedness in the financial industry and in the broader corporate world, through Wellington’s investors asking companies about their practices in these areas. When an investor or potential investor raises an issue, it is often assessed or addressed. Though our efforts to provide better climate data to investors, they will be increasingly better equipped to offer insightful and pointed questions.
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India trip gives WHRC staff first-hand look at climate challenges by Miles Grant Visiting a country that’s trying to manage both rapid growth and climate challenges, WHRC staff recently joined several partners to learn more about agricultural practices and soil carbon research in India.
Associate Scientist Jonathan Sanderman and Vice President Alison Smart traveled to the Indian state of Andhra Pradesh with colleagues from Tufts University’s Fletcher School of Law and Diplomacy, exploring ways WHRC’s scientific expertise can help India meet its Paris Agreement climate goals. India’s federal and state governments have set Paris climate goals that will push to transform not only energy sources but land use:
• Reduce emissions intensity of its GDP by 33 to 35 percent by 2030 from 2005 level. • Achieve about 40 percent cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030. • Create an additional carbon sink of 2.5 to 3 billion tons of CO2 equivalent through additional forest and tree cover by 2030.
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WHRC is an independent research organization where scientists study climate change and how to solve it, from the Amazon to the Arctic. Learn more at www.whrc.org.